1 Corporate Project Finance

8/3/2019 1 Corporate Project Finance

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Prof. Parveen sultana



‘The smallest unit of investment activity to be considered in the case

of programming’.

WORLD BANK:- defined project as ‘ an approval for a capital

investment to develop facilities to provide goods & service’.

Project is an organized programme of activity carried out to reach a

defined goal often of an non-recurring nature with a specifiedterminal point. It is a package of time bound , scheduled and

assembled activities dedicated to the attainment of a specific

objective of successful completion of a work on time and within

the allotted budget.



Project is a one-shot , time tested goal directed major undertakingrequiring the commitment of varied skills & resources.

A project is a combination of human and non- human resourcepulled together in a temporary organization to achieve a specifiedpurpose.

Project is a special activity on which money is spent in theexpectation of returns.

Project is an approval for a capital investment to develop facilitiesto provide goods & service.

A project is an appraisal for investment with the definite aim of producing a flow of output over a specific period of time.

Project is the whole complex of activities involved in usingresource to gain benefits.

Project is a scientifically evolved work plan devised to achieve aspecific objective within a specified period of time.

Project in the context of development activities is a kind of investment and it connects purposefulness size, location etc.



Project is a system involving coordination of number of interrelated activities to achieve aspecific objective.

A project is neither a physical objective nor is theend result.

Project is an organized programme of activitycarried out to reach a defined goal.

Project is a package of time bound scheduled andassembled activities.

Project has a mission or set of objectives.

Project has life cycle of growth , maturity & delay.

Project is customer – specific.

Project is a team work.

Project achieve its purpose and providessatisfaction to user and stakeholder.



BCPOBJECTIVE

SIZE

SCHEME

ORGANIZATION

INTERNAL

RATE OF RETURN

SIZE BENEFIT



P

R

O

J

E

CT

UTILITY TO SOCIETY

EMPLOYMENT GENERATION

ANCILLARY DEVELOPMENT

AREA DEVELOPMENT

INVESTMENT FLOW

INCOME GENERATION

SOCIAL BENEFITS

ENVIROMENT EFFECT



Investment pattern

Benefits or gain

Time limit

Location



Quantifiable & non quantifiable projects:-

Quantifiable project :-quantitative assessment of benefits can be made.

Non- quantifiable project:- assessment is not possible.

Sectoral projects:- irrigation, power industry, mining service etc.

Techno-economic project:-

Factor intensity – oriented classification:-This project classified as capital intensive or labor

intensive depending upon whether large scale investment in plant and machinery humanresource involved.

Causation – oriented classification:- This project classified as demand based or raw materials basedproject depending on the non- availability of certain good & service etc are the dominantreason for starting of the project.

Magnitude – oriented classification:- classification of project as large medium small depends on theproject investment.

Financial institution classification :-All India and state financial institution classify theproject according to their age and experience and the purpose for which the project is beingtaken up. They are as follows: (generally profit oriented.)

1. New project.

2. Expansion project

3. Modernization project

4. Diversification project



Service project:-service oriented project are

classified

1.welfare project2. service project

3. Research and development project

4. Educational project.

Turnkey project:- single point responsibility . This

responsibility are---time, performance parameters

and project cost



yesDoes Your

Product

have a

global

market?

Have you

checked

international

capacities?

Is your

project of

matching

scale?

Have you

assumed an

import tariff

of 10%?

Abort project Redesign your

project

Start financing

arrangement

Have you set a target

data within which

global conditions will

not change

drastically?

Is your project

viable?

YE

S

YE

S

Y

E

S

Y

E

S

Y

E

S

NO

NO

NO

NO



P.CPROJECT CYCLE

SUPERVISION

FOLLOW-UP

RECOVERY

IDENTIFICATION

PRE-SANCTION

FOLLOW-UP

FEEDBACK

DIRECT

AND INDIRECT

IMPLEMENTATIONAPPRAISAL



Documents

1 Corporate Project Finance